The provincial government is introducing a new refundable income tax credit to reward businesses for investing in the Ontario manufacturing industry.
New legislation will be proposed as part of the 2023 Ontario budget for the Ontario-Made Manufacturing Investment Tax Credit, which will provide a 10 per cent refundable corporate income tax credit of up to $2 million a year for Canadian-controlled private corporations.
The tax credit would be provided for investments in buildings, machinery and equipment that would be used in manufacturing or processing within the province.
“This new tax credit will give Ontario-based manufacturers another reason to invest in homegrown, Ontario-made innovation and expand operations,” said Premier Doug Ford in a news release. “As we navigate global economic uncertainty, our government is working around the clock to ensure that we are creating the right conditions for Ontario’s world-class manufacturing sector to grow and create more jobs.”
If passed, the tax credit would provide an estimated $780 million over the next three years to support qualifying businesses.
The province said lowering costs for businesses will improve Ontario’s competitiveness, create more jobs and help local manufacturers grow.